Inflation/Index Question

mik1973

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Can anyone please explain the difference between the Consumer Price Index (CPI), Retail price Index (RPI) and the Harmonised Index of consumer prices (HICP)?


Cheers,

Mick
 
CPI and HICP are the same thing - it was just a name change a few years back.

The main difference between CPI and RPI, is that the CPI is used for the government/BoE's inflation target as it is consistent with the measures used elsewhere in the EU, but is criticised for leaving out several things that were in the old RPI measure, most importantly various housing costs (eg mortgages, council tax, etc). A search on any of the govt. websites such as the Statistics Office will give full definitions if you need them.
 
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